Jamie Dimon, CEO of JPMorgan Chase, is set to caution UK Chancellor John Healey about the potential negative impacts of raising taxes on banks as they prepare to meet before the UK’s October budget announcement. Dimon plans to argue that increasing levies could deter investment and threaten jobs within the financial sector. This meeting is taking place amid growing speculation that the UK government may introduce a windfall tax on banks and oil companies in the budget scheduled for 28 October.
Currently, UK banks are subjected to a 28% corporation tax rate, a slight increase from the standard 25%, alongside a separate banking surcharge based on their UK balance sheets. Dimon has consistently voiced opposition to further tax hikes, suggesting they could lead to unfavorable outcomes for the banking industry. In a conversation with Healey in August, Dimon reportedly highlighted how elevated taxes could affect employment, drawing parallels to the declining finance-sector jobs in New York, which he partly attributes to the city’s tax policies.
Dimon, along with other banking leaders, has previously lobbied against increased tax burdens ahead of past UK government budgets. JPMorgan has expressed significant investment plans in London, including a £3 billion headquarters in Canary Wharf. However, Dimon has cautioned that such projects might be reconsidered if the UK adopts policies perceived as unfriendly to banks.
Calls for imposing higher taxes on banks have come from organizations such as the Trades Union Congress and Positive Money, which argue that the additional revenues could help alleviate rising household expenses. Meanwhile, the UK’s four major banks—HSBC, NatWest, Barclays, and Lloyds Banking Group—have collectively generated approximately £200 billion in pre-tax profits over the past five years, fueling the debate over the sector’s contribution to public finances.
Data commissioned by UK Finance reveals that British banks paid an estimated £43.3 billion in taxes during the financial year ending March 2025. This figure underscores the ongoing discussion about how much more the banking sector should contribute in taxes, with opposing views on the potential benefits and drawbacks of such fiscal policies.